Protect Your Business from Potential Fraud Risks
As a business, the ability to process credit and debit cards online is critical. As a high-risk business, this ability comes with the potential for higher fraud risks, like chargebacks, identity theft, and much more. While most merchant account providers offer fraud protection and monitoring, it is possible to institute certain requirements or systems to help reduce fraud risks. Not only will your business thrive with fraud reduction, but it may help your standing with your provider to lower reserve rates or other associated fees.
Require CVC2/CVV2 Codes
Nowadays, the biggest fraud risk to any business, online or in-store, is credit card fraud. Whether someone is using a stolen card at your store or using card numbers lifted from a hacked bank account, there are ways to make sure the transaction is legitimate. The best way to do this is to require the use of a CVC2 or CVV2 code. By requesting this, chargebacks are reduced, and it prevents fraudulent purchases, as many online fraud orders cannot verify this number. All credit cards feature this number, which can be found on the back of Visa, MasterCard, and Discover cards, or on the front of American Express cards.
Signature Upon Delivery
When your product goes out for delivery, you want to make sure it gets there safely, and to the right individual. Ways to make sure this happens is to refuse shipment to P.O. Boxes or drop shipment forwarding address, as the actual location of the receiver cannot be verified. Another way is to use a carrier that requires a signature of the recipient upon delivery. This not only creates a concrete paper trail should anything happen, but it can also deter those who would wish to make a fraudulent purchase.
Check IP Address/Physical Address
Since purchases can happen from all over the globe, a good rule of thumb to reduce fraud risks is to verify the IP or physical address of the customer. Does the IP address country match the billing address country? Does the shipping address country match the billing address country? Does the phone number and billing or shipping address have the same zip code? If you cannot answer these questions when an order comes up, it is best to reach out to the customer to get an understanding, or to refuse the purchase altogether as the risk of fraud is too great.
Total-Apps Combats Potential Fraud Risks
Fraud prevention systems offered by merchant account providers range in effectiveness. Trust the experts from Total-Apps who offer decades of experience in advanced payment processing solutions. The team at Total-Apps not only implements the right fraud prevention program for your specific business, but also constantly updates its merchants about the latest, most effective solutions to reduce losses through fraud.